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How Does Activision Blizzard Compare with Peers in Key Metrics?

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PE ratio

In the table below, you can see that the PE (price-to-earnings) ratio for Activision Blizzard (ATVI) is estimated at ~41.1x for 2018, which is lower than Zynga’s (ZNGA) PE ratio of ~46.1x and Take-Two Interactive’s (TTWO) PE ratio of 74.0x but higher than Electronic Arts’ (EA) ratio of 37.7x and NetEase’s (NTES) ratio of ~21.7x.

Activision’s PE ratio for 2019 is estimated to be 34.1x, which is higher than the estimates for Zynga, NetEase, EA, and TTWO, which are looking at prospective PE ratios of 28.4x, 19.0x, 30.9x, and 32.7x, respectively.

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ROE and ROA

Activision Blizzard’s ROA (return on assets) for fiscal 2018 is estimated to be 10.7%, while its ROA might reach 13.7% in 2019. By comparison, the ROA figures for Zynga, NetEase, EA, and TTWO for the current fiscal year stand at 5.0%, 17.1%, 22.3%, and 10.7%, respectively. The ROA figures for these competitors could reach 5.3%, 16.4%, 21.6%, and 14.4%, respectively, in the next fiscal year.

Activision Blizzard’s ROE (return on equity) for fiscal 2018 is estimated to be 16.6%, while its ROE could reach 23.3% in 2019. By comparison, the ROE figures for Zynga, NetEase, EA, and TTWO for the current fiscal year stand at 5.5%, 25%, 28.3%, and 28.5%, respectively. The ROE figures for these competitors could reach 7.3%, 23.7%, 27.8%, and 36.5%, respectively, in the next fiscal year.

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